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The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector

Author

Listed:
  • Miklós Pakurár

    (Institute of Applied Informatics and Logistics, Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

  • Hossam Haddad

    (Károly Ihrig Doctoral School of Management and Business, University of Debrecen, 4032 Debrecen, Hungary)

  • János Nagy

    (Oncology Institute, UFaculty of Medicine, niversity of Debrecen, 4032 Debrecen, Hungary)

  • József Popp

    (Institute of Sectoral Economics and Methodology, Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

  • Judit Oláh

    (Institute of Applied Informatics and Logistics, Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

Abstract

The aim of this paper is to use a recently developed framework of supply chain integration (SCI) to examine the influence of a set of relationships between SCI and internal control on financial performance in the Jordanian banking sector. SCI consists of external integration and internal integration. External integration includes customer integration and supplier integration. This study utilizes survey data from 249 employees in the Jordanian banking sector and tests the research framework and hypotheses using exploratory factor analysis. The impact of supply chain internal and external integration and internal control significantly affected financial performance. The impact of the examined factors on financial performance is as follows, in decreasing order: internal integration, supplier integration, customer integration, and internal control. This study’s contribution to supply chain management is in its integration of SCI and internal control variables to propose a practical framework for the banks to use, and its development of a measurement tool for managers to determine the effects of internal and external integration and internal control on financial performance.

Suggested Citation

  • Miklós Pakurár & Hossam Haddad & János Nagy & József Popp & Judit Oláh, 2019. "The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector," Sustainability, MDPI, vol. 11(5), pages 1-20, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1248-:d:209352
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    7. Qilun Li & Zhaoyi Xu & Xiaoqin Shen & Jiacheng Zhong, 2022. "Predicting Business Risks of Commercial Banks Based on BP-GA Optimized Model," Computational Economics, Springer;Society for Computational Economics, vol. 59(4), pages 1423-1441, April.
    8. Sehar Zulfiqar & Rabeea Sadaf & József Popp & Jolita Vveinhardt & Domicián Máté, 2019. "An Examination of Corporate Social Responsibility and Employee Behavior: The Case of Pakistan," Sustainability, MDPI, vol. 11(13), pages 1-15, June.
    9. Ammar Salah & Dilber Çağlar & Khaled Zoubi, 2023. "The Impact of Production and Operations Management Practices in Improving Organizational Performance: The Mediating Role of Supply Chain Integration," Sustainability, MDPI, vol. 15(20), pages 1-18, October.
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